OfBusiness reported a 21% rise in net profit to ₹724 crore for FY26, even as revenue declined by 7% to ₹20,645 crore. The company improved its profit margins by focusing on higher-value products and strengthening its lending arm, Oxyzo. Investors are noting the shift toward cash-flow-positive operations as the company maintains its IPO deferral.
OfBusiness, the business-to-business commerce and lending platform, has released its financial performance for the fiscal year 2026. The company’s consolidated revenue for the year stood at ₹20,645 crore, representing a 7% decline from the ₹22,241 crore reported in the previous year. Despite the lower top-line figure, the firm successfully grew its net profit by 21%, reaching ₹724 crore compared to ₹597 crore in FY25.
Margin Expansion and Commerce Strategy
The profit growth was largely driven by a significant improvement in the commerce division’s operational efficiency. Earnings before interest, tax, depreciation, and amortization (EBITDA) rose to ₹769 crore from ₹575 crore. This reflects an expansion in operating margins to 4%, up from 2.6% in the prior year. The company stated that this performance improvement was achieved by integrating its manufacturing processes and exiting low-margin, less productive business categories. By moving away from segments that did not contribute effectively to the bottom line, the company has managed to focus on more profitable business areas.
Financial Health and Lending Performance
Beyond profitability, the company showed stronger cash flow management. Operating cash flow from the commerce unit increased to ₹1,302 crore from ₹715 crore, allowing the business to generate a positive free cash flow of ₹390 crore. This is a crucial metric for investors as it indicates the company is funding its operations more efficiently without relying heavily on external capital.
Oxyzo, the company’s non-banking financial subsidiary, continued to expand its reach. The lending arm ended the fiscal year with assets under management of approximately ₹11,800 crore, a 28% increase from the previous year. The subsidiary reported a return on assets of 3.8%, while maintaining asset quality with gross bad loans at 0.75%. This low level of non-performing loans suggests a cautious approach to lending, which is vital for a business that operates in the B2B supply chain space.
Future Outlook and IPO Status
OfBusiness transitioned into a public limited company in January 2025, which was widely seen as a preparatory step for a potential stock market listing. While there had been market expectations of a large initial public offering, the company has chosen to defer these plans. With a consolidated net worth of ₹10,300 crore and liquid assets exceeding ₹2,000 crore, the company appears to have the financial stability to support its operations for now.
Investors will likely track the company's ability to sustain these improved margins as it continues to grow its commerce and lending businesses. Future monitorables include the consistency of cash flow generation and the management's commentary on potential timing for any future public market entry.